The role of the media in a bubble
Author: Gareth Campbell, John Turner and Clive B. Walker
Published in Explorations in Economic History (2012), vol. 49, 461–481
Abstract: We examine the role of the news media during the British Railway Mania, arguably one of the largest financial bubbles in history. Our analysis suggests that the press responded to changes in the stock market, and its reporting of recent events may have influenced asset prices. However, we find no evidence that the sentiment of the media, or the attention which it gave to particular stocks, had any influence on exacerbating or ending the Mania. The main contribution of the media was to provide factual information which investors could use to inform their decisions.
Download Journal Article:
http://www.sciencedirect.com/science/article/pii/S0014498312000411
Download Working Paper:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2545202
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Published in Explorations in Economic History (2012), vol. 49, 461–481
Abstract: We examine the role of the news media during the British Railway Mania, arguably one of the largest financial bubbles in history. Our analysis suggests that the press responded to changes in the stock market, and its reporting of recent events may have influenced asset prices. However, we find no evidence that the sentiment of the media, or the attention which it gave to particular stocks, had any influence on exacerbating or ending the Mania. The main contribution of the media was to provide factual information which investors could use to inform their decisions.
Download Journal Article:
http://www.sciencedirect.com/science/article/pii/S0014498312000411
Download Working Paper:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2545202
Read Online:
| railwaymedia.pdf |
